Neometals Ltd · ASX:NMT
Neometals — AMEC Convention 2017
41 slides from Neometals's conference presentation, Jun 8, 2017
Slide 1: The Evolution of Lithium - AMEC Presentation
For personal use only The Evolution of Lithium ™ AMEC Presentation 8 June 2017 1
Slide 2: Disclaimer
2 Disclaimer For personal use only Summary information: This document has been prepared by Neometals Ltd (“Neometals” or “the Company”) to provide summary information about the Company and its associated entities and their activities current as at the date of this document. The information contained
Slide 3: Corporate
For personal use only 3 Corporate + = 3
Slide 4: Human & Financial Resources
Human & Financial Resources For personal use only ASX CODE: NMT OTC:RDRUY 18 MONTH SHARE PRICE Last close (31‐5‐2017) A$ 0.25 60 Shares on issue M 560 50 Market capitalisation A$M 140 40 30 Net Cash (at 31‐3‐2017) A$M 53.5 20 Receivables/Investments A$M 16.5 10 0 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 A
Slide 5: For personal use only
For personal use only 5 + = + =
Slide 6: Investment Thematic – Conservative Exposure to Energy Storage Revolution
Investment Thematic – Conservative Exposure to Energy Storage Revolution For personal use only 6X Growth 6
Slide 7: Long-term Strategy
Long-term Strategy For personal use only 2 cent unfranked div – April ‘16 2 cent unfranked div – Aug ’16 A$5M/5% on market buyback 7
Slide 8: Focus on Li-Ion Battery Commodities
Focus on Li-Ion Battery Commodities For personal use only 8
Slide 9: Our Positions in the Supply Chain
Our Positions in the Supply Chain For personal use only 9
Slide 10: For personal use only
For personal use only 10 + = + =
Slide 11: Mt Marion Lithium Operation
For personal use only Mt Marion Lithium Operation Sale process underway for remaining 13.8% equity + = 11
Slide 12: World's largest lithium concentrator
World’s largest lithium concentrator For personal use only + = 12
Slide 13: Globally Significant Operation – 400kt concentrates
Globally Significant Operation – 400kt concentrates (~50kt LCE) For personal use only + = 13
Slide 14: Outstanding Offtake Agreement
Outstanding Offtake Agreement For personal use only China’s largest, most diverse lithium producer Life-of-Mine, Take-or-pay Offtake Agreement From 1 July moving to transparent Lithium Carbonate/Lithium Hydroxide linked formula, with floor price protection Letter of Credit (100% payment on i
Slide 15: Downstream processing: WA-based LiOH Project
For personal use only Downstream processing WA-based LiOH Project
Slide 16: Lithium users want LiOH/Li2CO3 from spodumene converted outside China
Lithium users want LiOH/Li2CO3 from spodumene converted outside China For personal use only
Slide 17: Commercialisation Plan
Commercialisation Plan For personal use only • Locate plant in WA to minimise transport, 7t spodumene concentrate needed for 1t of Lithium Hydroxide • Utilise local spodumene (Share of Mt Marion or Third Party), natural gas, reagents and staff • Use Sulfate/Caustic Flowsheet from leading Lithium equ
Slide 18: Downstream processing: Direct Extraction from Brine
For personal use only Downstream processing Direct Extraction from Brine 100% Neometals + =
Slide 19: Selective LiCl Extraction from Brine
Selective LiCl Extraction from Brine For personal use only • Pat pending Titanate adsorbent • Quick load/strip cycle – 30mins • Complete rejection of sodium • High recovery of Lithium 53-79% • Returns water to salar, no evaporation • Next Step - Proof of Scale + = 19
Slide 20: Direct Extraction via Adsorption
Direct Extraction via Adsorption For personal use only + = 20
Slide 21: Downstream processing: ELi Process
For personal use only Downstream processing ELi Process™ Neometals 70% Mineral Resources Ltd 30% + =
Slide 22: Patented Process for Conversion of LiCl to LiOH
Patented Process for Conversion of LiCl > LiOH is a potential gamechanger For personal use only Business model is to licence to existing brine producers in return for royalty stream: • De-risks ELi for own use later • Quicker cashflow • Higher P/E multiple + = 22
Slide 23: Downstream processing: Lithium Battery Recycling
Co For personal use only Downstream processing Lithium Battery Recycling Neometals 50% of IP, Exclusive licence + =
Slide 24: Lithium Battery Recycling Strategy
Lithium Battery Recycling Strategy Co For personal use only Exploiting cost advantage in recovery of Cobalt from Lithium Cobalt Batteries in Consumer Electronics to develop a low-risk, long-life, high-margin operation with strong partners. Estimated < 5% Recyled + = 24
Slide 25: Scoping Study Results
Scoping Study Results Co For personal use only (± 30% accuracy) Operating Costs US$4.45/lb Co (US$10k/t) Spot price US$25/lb Co (US$55k/t) Capex US$4.5M Proceeding to pilot plant – Q3 ‘17 Can be constructed and commissioned in 42 weeks + = 25
Slide 26: Commercial Plant Schematic
Commercial Plant Schematic Co For personal use only Incoming Materials Feed preparation and Purification and Finished digestion Crystallisation Product Residue Disposal Reagent Storage Plant footprint approx. 30m x 50m + = 26
Slide 27: Commercialisation Plan
Commercialisation Plan Co For personal use only Running Partner/Site Selection Processes in parallel with test work and engineering programs + = 27
Slide 28: Barrambie Titanium Project
For personal use only Barrambie Titanium Project 100% Neometals + = 28
Slide 29: Strong demand/supply fundamentals
Strong demand/supply fundamentals For personal use only The titanium pigment industry is 10x as large as the lithium compound industry. Growth = GDP Globally declining grades and quality Cost push price inflation + = 29
Slide 30: High Quality Resource
High Quality Resource For personal use only 1 2 +150Mt 47Mt @ 3 @34% TiO2 22% TiO2 18% Lac Tio Barrambie* Tellnes * Mineral Resource Estimate (JORC2012) on page 29 + = 30 Sources: Company Reports
Slide 31: PFS indicated very low Opex using the licenced Neomet Process
PFS indicated very low Opex using the licenced Neomet Process For personal use only + = 31
Slide 32: Commercialisation Plan
Commercialisation Plan For personal use only Met Sample Pilot Scale Pilot Scale DSO/Toll Drilling and Beneficiation Hydromet Concentrate/ Updated Test work Test work Offtake and/or Pre-feasibility for DSO for Ti (OH)4 Ti (OH)4 JV Study Evaluation Evaluation* Decisions* Q2 2017 Q3 2017 Q4 2017 Q1 201
Slide 33: Investment Proposition
33 For personal use only Investment Proposition + = 33
Slide 34: Lithium: Cash, cashflow & growth options
Lithium: Cash, cashflow & growth options For personal use only 03 02 Potential to downstream 01 process LiOH. ~A$53.5M Cash plus ~A$16.5M in receivables and + Cashflows from 13.8% Mt Marion Or Potential Sale + Licence ELi to brine/hard rock producers. Li-Ion Battery investments Recycling Project +
Slide 35: Titanium: A growth story for 2018
Titanium : A growth story for 2018 For personal use only 03 02 Demonstrate DSO/concentrate 01 & Ti(OH)4 Quality. Demonstrated Technical + Demonstrated Economic + Obtain Strong Partners Feasibility Viability to Commercialise + = 35
Slide 36: Technology: developing a diversified portfolio
Technology : developing a diversified portfolio For personal use only 03 01 02 Obtain Strong Partners to Obtained Strong Partners for + Commenced third party testing + Commercialise ELi/LiB Recycling /LTO Anode Neomet Process -Neomet Process Material + = 36
Slide 37: Thank you
For personal use only Thank you www.neometals.com.au + = 37
Slide 38: Mineral Resource Estimate – Mt Marion
Mineral Resource Estimate Mt Marion Lithium deposit, as at October 2016, for a block cut‐off grade of 0.5% Li2O For personal use only Classification Deposit Tonnes (Mt) Li2O % Fe % Indicated Area 1,2,2W 19.3 1.41 1.08 Area 4 2.0 1.11 0.99 Area 6 7.7 1.29 1.04 Indicated Total 28.9 1.35 1.06 Inferred
Slide 39: Feasibility Study - Financial Metrics
Feasibility Study - Financial Metrics For personal use only FS Life of Plant (LOP) 20 years Pre-production Capital cost US$ 158 million** [1 Average Annual Pre-tax Net Cashflow US$ 82 million Pre-tax Internal Rate of Return 51% Pre-tax NPV (12% real discount rate) US$ 481 million Payback of capital
Slide 40: Mineral Resource Estimate – Barrambie
Mineral Resource Estimate Barrambie Ti‐V deposit, as at September 2015, for a block cut‐off grade of 15% TiO2 For personal use only Density TiO2 V2O5 Fe2O3 Al2O3 SiO2 Classification Zone Oxidation MTonnes (t/m3) (%) (%) (%) (%) (%) Eastern Oxide 18.7 2.82 23.29 0.59 42.93 10.70 16.36 Transition 8.7
Slide 41: Pre-feasibility Study - Financial Metrics
Pre-feasibility Study - Financial Metrics (*) For personal use only Life of Mine (LOM) 19.6 years Pre-production Capital cost A$ 549 million [1 (excluding EPCM and Contingency) Average Annual Pre-tax Net Cashflow A$ 123 million Pre-tax Internal Rate of Return 21% Pre-tax NPV (12% real discount rate)